The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-12-08
HARPER'S RASCALIrY.
A, Government Expert Throws a Bright
Light on the Operations of the Fidelity.


CINcINNATI. Dec. THE Harper trial did
not reach the close of the governments testi-
curious crowds gathered in all the available
places during the entire day. Howard Eckert
among other things. was asked TO identify cer-
tsin checks Of his firm, which hs did as follows:
Hamill & Brines, s95, 600: Wright s Co, SIC, 500;
Poole 6 Sherman, $40, 500; Mcfarland & Co,
$4,000; Crosby &c Co., $4,000; Rosenfeldt &
Co., 1884. 900; Kershaw & Co., $3.50. 900; Flem-
ing & Boyden, $50, ,0C0, making in all 81 l472 600.
Maurce Rosenfeldt, of Chicago, formerly
grain and commission merchant testified that
he had dealings with Wiltshire Eckert 6 Co. He
recognized the account current with them for
the purchase of about 500, 900 bushels of wheat.
His house received $3.50, 500 in money.
The sensation of the DAY was the testimony of
Mr.. Frank NJ. Hayes, the expert who was sent
here by the government to assist in the prosecu-
ton of the He is a nervous looking young
man, with fierce mustache. short cropped hair,
piercing eyes and large mouth He said, in
answer to questions. that he was expert
countant; that he had had about ten years ex-
perience in banks. and has filled all positions up
to assistant cashier. He had also been familiar
with brokers business by two-years connection
with firm in Pittsburg whose business reached
into the millions. He had examined for the
government the books of the Penn National
Bank, OF Pittsburg, whore some millions of dol
lars were involved. He had made a careful ex-
animation of the books Of the Fidelity
National Raa Bank; OF the First s National N nal
Ch.mical National Bank, so far as they relate
to dealings with Harper and the Fidelity Bank.
He had also examined the accounts of Irwin,
Greene & Go. and G. j. Kershaw e. Co with
reference to their dealings with Harper and the
Fidelity National Bank He began by saying
that he found charge tickets at the Fidelity,
one of $500. 600. credit to z. L. Harper and
charge against the First National Bank of New
York. and another of the same kind. and
third for 100000. Then, March IL, there
was one creditng Harper with $500 and chare-
ing the Chemical National Bank of New York
with the same amount. From his examination
of the books of the First National Bank he
and no money subject to the draft of the Fidel-
ity Bank. In the case of the Chemical National
Bank the Fidelity Bank had a credit there by
reason OF certificate OF deposit forwarded
to them, but that certificate not
entered on the books of the Fidelity
Bank. The First National had two accounts
with the Fidelity; one of them showed credits to
the Fidelity, the other overdrafts. By refer
ence to both it appears that the Fidelity really
had to its credit. on March ]. 1887, but SO. 900.
One of the accounts at that time showed cred
1t OF $209 O00 the other showed over6rafts 20 the
amount of 5000 000 On April 1. these two ac-
counts were consolidated, when there was So. 832
First National Bank of New York. On April 80
there to the credit of the Fidelity National
Bank 100000 on the books of the First National
of New York. by of certif-
setes of deposit for 100000 each. but
tEtso certificates of deposit not
tered the Fidelity books. and there
nothing their books TO show this outstanding
Indebtedness Previous to this time Harper
was credited with $400, 900, and thus the books
Of the two banks were made to ssres Turning.
then, to the Chemical National Bank OF New
York. he said their books showed that the
Fidelity National had credit of 100000,
marked ''loan," indicating that the Fidelity had
borrowed that amount, but on the Fidelity books
there is nothing to indicate loan. Instead,
certificate of deposit for $500, 900 is issued and
the stub is marked .'canceled" Mr.. Hayes
then traced from day to day how Harper's cred
its had been exhausted by drafts ETC., and that
all went to persons in nterested in the wheat DEAL
The showing was minute and in detail, and he
followed out the entire $500. 900 in this way.
showing that OF this snm there remained to his
credit on March IL, but $45. 20 Recurring
to the First National, he said the draft record
showed draft by the Fidelity the First Ma
tional for 800. 900. The First National never
paid that draft. but Mr. Harper's account on
the Fidelity is charged. April II, with $780, 600,
aud this made the books agree. The witness
also stated that two drafts, drawn April 28 and
80 for $780, 900 each. we're not en- tered on the FL
deity books until June Is although one of them
paid in New York May T.
Mr.. Hayes then took up the accounts of Irwin.
Green & Co., and stated that the Fidelitys
books did not show any such credits to their
account the letters OF advice sent them indi-
Gated. Irwin Green & Co. credited Hovt with
s34o 900; all this. except s., 962. So was drawn
out by Hsrpers checks. There was no entry
of letters of credit to Hoyt amounting $685.
600 until June I6 to Is. G. j. kershaw e.
Co. were advised by four letters of credit that
Hovt had deposited to their credit $500, 900.
Kershaw & CO. s books credit Harper with four
amounts, $4,000 each, corresponding in
date to the letters of credit The
witness also told of transfer of credits
to the American Exchange Bank amounting to
100000. This corresponded to check by
Harper for $l03, ,000 He went to show from
the books that all of this 500 900 absorbed
in the wheat deal. There really but $761.25
actually put to the credit of Kershaw g. Co. in
the Fidelity Bank
While this witness was laying bare, by refer
ence to Harpers own books all these startling
Irregularities his attorney did not raise single
objection the form of the examination. and
made no effort whstever to obscure the light
being thrown their clients transactions,
while Harper himself amused himself by chat
ting and laughing with his wife and her sister,
or by writing notes and passing them to friends
seated within reach. This witness had
ended his testimony when court adjourned.
Attnv TSrtJ,a